Debts Recovery Tribunal allowed an Original Application for issuance of a Recovery Certificate against a defendant who failed to appear. The court reduced interest to 6% p.a. due to agricultural purpose.
Issuance of Recovery Certificate for Rs.55,22,573.11 with interest at 6% p.a. simple from date of filing.OA. No.682/2024
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 28th Day of October, 2025
Present: Sri. T. RAJESH Presiding Officer
OA. No.682/2024
BETWEEN:
Canara Bank Bailhongal Branch Bailhongal, Dist. Belgavi Through its Division Manager Mr. Venkata Sreekanth Ryali
… APPLICANT
AND:
Mr. Yallappa @ Manjunath Basappa Deganvi S/o. Basappa Panadi Aged about 40 years Residing at: Sy.No.56/2, Hittanagi Village, PO Sutagatti Taluk Saundatti, Dist. Belagavi-591126
...DEFENDANT
Counsel on record/appeared for:
Applicant : Mr. Venu K V Defendant : Exparte
:FINAL ORDER:
under section 19 of Recovery of Debts and Bankruptcy Act 1993 for seeking issuance of Recovery Certificate against the defendant for
Rs.55,22,573.11 (Rupees Fifty Five Lakh Twenty Two Thousand
OA. No.682/2024
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Five Hundred Seventy Three and Eleven Paise only) with further interest thereon from the date of filing the Application till realization from the Defendant.
OA. No.682/2024
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Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the accounts.
contentions as taken in the OA in the light of documentary evidence and proof affidavit.
Both these issues are gone into and decided together.
tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found
OA. No.682/2024
4
admissible and are sufficient to prove availment of credit facilities
as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendant and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.
issues raised in this manner, this Tribunal is of the view that OA is liable to be allowed.
were availed for agriculture purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 6.00%
p.a.(simple).
13. In the result, OA.No.682/2024 stands allowed,
of Rs.55,22,573.11 (Rupees Fifty Five Lakh Twenty Two Thousand
Five Hundred Seventy Three and Eleven Paise only) with further
OA. No.682/2024
5
interest of 6.00% p.a.(simple) from the date of filing OA till the realization from the defendant, after giving credit to all the amounts recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against defendant personally and also by proceeding against the schedule property. The schedule to the OA be the schedule to the Recovery Certificate.
ii) If the sale proceeds are not found sufficient to cover
the amount due and payable to the applicant bank, the defendant personally and his other assets are liable for all such amounts due under the loan accounts.
iii) The applicant bank is allowed cost of the proceeding
which applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this
order and transferred to Recovery for execution.
v) Interim Application pending, if any, stands disposed of with this Final Order.
in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of
OA. No.682/2024
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DRT (Procedure) Rules, 1993.
[Dictated to the Stenographer (PR), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 28th Day of October 2025].
Sd/-
(T. RAJESH) PRESIDING OFFICER
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Mr. Anurag Mehra, Chief Manager of the applicant bank.
Exhibits on the part of the Applicant:
| Annexure | Particulars |
|---|---|
| A1 | Applicant evidence |
| A2 | List of documents |
| A3 | Sanction letter dated 29.12.2014 |
| A4 | Agreement and Deed of Hypothecation for KCC dated 27.01.2015 |
| A5 | Simple mortgage dated 27.01.2014 |
| A6 | Proposal letter dated 07.09.2015 |
| A7 | Applicant-cum-sanction for renewal and/or enhancement dated 17.03.2017 |
| A8 | Demand promissory note dated 17.03.2016 for a sum of Rs.10 lakhs |
| A9 | Supplemental agreement dated 17.03.2016 |
| A10 | Proposal letter dated 07.11.2016 |
| A11 | Proposal letter dated 10.10.2019 |
| A12 | Letter dated 11.11.2019 with regard to conversion of the crops loan into term loan |
| A13 | Memorandum of agreement for agricultural loans dated 27.01.2015 |
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| A14 | Simple mortgage deed dated 27.01.2015 |
|---|---|
| A15 | Letter of Revival dated 01.02.2022 |
| A16 | Legal notice dated 12.01.2024 |
| A17 | True extract of statement of account pertaining to the defendant’ aforesaid loan accounts No.4738895000105 (New No.4738847000089) |
| A18 | True extract of statement of account pertaining to the defendant’ aforesaid loan accounts No.4738881000051 |
| A19 | Statement showing total outstanding liabilities. |
(T. RAJESH) PRESIDING OFFICER
Sd/-
2 issues framed by the court
Whether the applicant succeeded in proving the OA claim against the defendant?
What order is to be passed in the matter?
2 provisions across 1 enactments
Canara Bank Bailhongal Branch
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
